Total new annualized premiums for Canadian life insurance hit a record high of $2.04 billion in 2024, marking an 8% increase from the previous year, according to a recent survey by LIMRA. The survey, which represents 93% of the Canadian market, highlighted the strong performance of whole life insurance.
Whole life insurance led the surge, with new premiums reaching a record $1.41 billion, an 11% increase compared to 2023. While the number of whole life policies remained stable, the premium growth was significant. Universal life also performed well, with new premiums totaling $256 million, a 3% increase, and a 3% rise in the number of policies sold year-over-year.
Conversely, term life insurance saw a decline in new premiums, dropping to $372.5 million, down 2%, with the number of policies sold decreasing by 10% year-over-year. LIMRA noted that the term sales in 2023 were unusually high due to product innovation and new affiliations among some carriers.
Whole life premiums accounted for a substantial 69% of the total Canadian life insurance market in 2024. Universal life represented 13%, and term life held 18% of the market share. Overall, the total number of policies decreased by 5% in 2024, marking the fourth consecutive year of declining policy sales, according to LIMRA.
John Carroll, senior vice-president and head of life and annuities with LIMRA and LOMA, emphasized the importance of addressing coverage gaps. “With 30% of Canadian adults saying they live with a coverage gap, it is critical for our industry to do more to reach underserved markets,” he said.
At a recent session on insurance distribution during Advocis’ annual symposium, panelists discussed the challenge and opportunity presented by the underserved market, particularly the “mid-market” and lower income groups. Stephen Frank, president and CEO of the Canadian Life and Health Insurance Association, stated, “We have to recognize that collectively we are, over time, chasing the higher-net-worth [clients]. We’ve got to figure out a solution for that middle tier. There’s a huge opportunity, and they’re the ones who really need the advice.” He added that technology would be a key component of this solution.
